The Market Week Ahead: April 22 – April 26

 

April 22 – This week is going to be all about earnings. That can mean a lot of noise and not much action if you just look at the major indices. 

Monday’s market action wasn’t primarily driven by earnings, but is typical of the kind of day you can get during earnings season. Major indices hardly moved, but plenty of big-name stocks made significant moves. Of course for that to work, some have to be up big, while others are down big. These sorts of conditions are often referred to as “stock picker’s markets” as picking the right stocks can get you significantly better results than the indices are posting.

Today’s action wasn’t super-hard to figure out. The Trump Administration is moving to cut off oil from Iran, which, when combined with supply issues stemming from unrest in Libya and Venezuela, pushed oil prices higher. Meanwhile, some consumer and retail stocks fell, potentially on worries that rising gas prices will cause people to cut back on discretionary purchases.

We’re likely to see similar things happen as the week goes on, only instead of macro trends, we’re likely to see Wall Street buy the winners and sell the losers of the quarterly earnings race. The last several earnings periods have been notable for their reasonableness. Traders don’t seem to be trying to extrapolate too much from one report and have generally taken a measured approach, in both directions.

Economic Events this Week

First quarter GDP is the headline this week. The number will be revised two more times, but this first read will generate a lot of buzz. Knowing how fast the economy grew during the first three months of the year doesn’t really tell you how to trade the fifth month, but it will give the TV pundits something to talk about during the day Friday after the morning’s earnings calls are over.

  • Monday
    • 10:00 a.m. – Existing Home Sales
  • Tuesday
    • 10:00 a.m. – New Home Sales
  • Wednesday
    • 10:30 a.m. – EIA Crude Oil Inventories
  • Thursday
    • 8:30 a.m. – Initial Claims
    • 8:30 a.m. – Continuing Claims
    • 8:30 a.m. – Durable Goods
    • 8:30 a.m. – Durable Orders
    • 8:30 a.m. – EIA Natural Gas Inventories
  • Friday
    • 8:30 a.m. – GDP – Advance Estimate

Earnings Reports this Week

These are the highlights, but there are 149 S&P 500 components reporting this week, and hundreds more companies that are outside that index.  

Tuesday:

  • Before the bell: PG, VZ, KO, UTX, LMT
  • After the bell: TXN, SYK, AMTD, EBAY, CP

Wednesday:

  • Before the bell: BA, T, NVS, SAP, CAT
  • After the bell: MSFT, FB, V, PYPL, TSLA

Thursday:

  • Before the bell: CMCSA, MMM, ABBV, MO, UPS
  • After the bell: AMZN, INTC, SBUX, ILMN, F

Friday:

  • Before the bell: XOM, CVX, SNY, AZN, SNE

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Robotics and Artificial Intelligence
  • Semiconductors
  • Homebuilders
  • Broker-dealers
  • Aviation
  • Multimedia and Networking
  • Solar

Weak sectors past month

These sectors are down 5% or more in the last 20 trading days:

  • Junior Gold Miners
  • Biotechnology
  • Medical Devices
  • Gold Miners
  • Health Care

Strong sectors past five trading days

These sectors are up more than 3% in the last five days.

  • Oil and Gas Exploration
  • Semiconductors
  • Solar
  • Robotics and Artificial Intelligence

Weak sectors past five trading days

These sectors are down 3% or more in the last five trading days.

  • Junior Gold Miners
  • Medeical Devices
  • Gold Miners
  • Health Care
  • Real Estate

Bobby Raines

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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